In the matter of JK Meats Pty Ltd

JK Meats Pty Ltd, a company, brought a case against one of its members and directors, who was also employed by a competitor, in the Supreme Court of Queensland. The company sought interim injunctive relief against the member and director for breach of a shareholders agreement. The dispute centred around the member's employment with a competitor, which the company claimed constituted a breach of the shareholders agreement and resulted in oppression of the minority shareholders. The court was tasked with determining whether the company was entitled to an interim injunction to prevent the member and director from continuing to work for the competitor.

The court examined the terms of the shareholders agreement, the nature of the member's employment with the competitor, and whether the member's actions constituted oppression of the minority shareholders. The court also considered the balance of convenience and whether an interim injunction was necessary to preserve the status quo pending the final determination of the case. Ultimately, the court found that the member and director's employment with the competitor did constitute a breach of the shareholders agreement and that the minority shareholders were being oppressed. The court also found that the balance of convenience favoured granting the interim injunction.

Accordingly, the court granted the company an interim injunction, restraining the member and director from continuing to work for the competitor until the final determination of the case. The court noted that the injunction was not a final determination of the merits of the case, but rather a temporary measure to preserve the status quo. The court also noted that the injunction was not intended to interfere with the member and director's right to earn a livelihood, but rather to prevent them from using their position within the company to gain an unfair advantage over the minority shareholders. The court's decision provides guidance to companies and their members on the enforceability of shareholders agreements and the circumstances in which interim injunctive relief may be granted.